St.Josephs Educational Trust,Chennai vs Dcit, Central Circle-193), Chennai on 6 June, 2025
genuine hearing and not an empty formality. When the statute requires
the AO to give reasonable hearing before imposition of penalty, the AO
was duty bound to give proper notice spelling out the charge/fault, under
which, the AO intends to put the assessee on notice for levy of penalty, so
that the assessee would be able to defend its case. Therefore, we are of
the view that the AO was duty bound to issue notice spelling out the
specific limb under which penalty proceedings has been initiated. In the
instant case, as noted since the search was initiated on 07.11.2019, the
AO ought to have issued notice under sub-section (1A) of section 271AAB
of the Act and also mentioned the specific limb [clause (a) or clause (b) of
sec.271AAB(1A) of the Act] under which the assessee is being proceeded
against for levy of penalty. Different consequences are envisaged if
charged under clause (a) or clause (b) of sub-section (1A) of section
271AAB of the Act. The AO therefore should have issued proper notice
to the assessee. Omnibus notice (SCN) betrays application of mind by
the AO and issuance of such kind of notices has been deprecated by the
Hon'ble High Courts in several cases including the jurisdictional Madras
High in the case of Shri R. Elangoan v. PCIT in TCA No.770 & 771/2018
dated 30.03.2021, wherein the Hon'ble Madras High Court upheld the
ITA Nos.3293 & 3294/Chny/2024
(AYs 2018-19 & 2020-21)
St. Joseph's Educational Trust
&
ITA Nos.3295 to 3297/Chny/2024
(AYs 2018-19 to 2020-21)
St. Joseph's Institute of Science &
Technology Trust
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